Australia ploughs cash into savings accounts
As the global economic misery continues, many Australians have started ploughing their cash into savings accounts in a bid to prepare for a grim future.
Speaking to the Daily Telegraph, Shane Oliver, a chief economist at AMP, the country’s largest super provider, said that in the past year, Australia has increased the amount of money going into savings accounts from zero per cent to four per cent of their income.
And the thrift doesn’t stop there, with further findings showing that Aussies are diligently paying off their credit card bills and overpaying on their mortgages to make the most of historically low-interest home loans.
Mr Oliver said that the new attitude to money can be summed up by the way Australians reacted to Rudd’s announcement that he would be giving everyone a Christmas bonus to encourage a spending splurge.
“Clearly, the cash handouts are designed to increase spending, but evidence suggests that less than 30 per cent of the money will be spent in the short term,” he said.